NIS2: Do you know your data, and can you classify them?

Without a system for marking different types of company data, it is impossible to ensure reliable protection of confidential information. In addition, the classification of information is required by legislation or applicable standards in many industries – including the NIS2 directive .

Classification of information refers to the grading of the level of secrecy of company documents based on their confidentiality. Rules for handling these documents are defined for each level (category) of information, and at the same time, the persons who can handle them are determined. Each document or set of data has a label thanks to the classification, based on which it is placed in the appropriate category and the appropriate rules are applied to it. The introduction of classification and protection of company information is one of the basic steps of information security and data management, as it contributes to better security of confidential information. In some industries (typically in the automotive industry, the field of financial and legal services, and many others), the classification of information is also required by law or by contract. Data classification is also a prerequisite for meeting the requirement for increased protection of personal data according to the GDPR.

What is the benefit of setting up an information classification system in an organization?

1. Protection of sensitive information

The classification and subsequent protection of data makes it possible to distinguish and identify sensitive information, such as customer personal data and financial data or strategic plans of the company and makes it possible to ensure that this confidential data is accessible only to authorized persons. This significantly reduces the risk of leakage or misuse of sensitive information.

Today, data is one of the most valuable assets of companies, which at the same time bear responsibility for its processing and storage. Although it can sometimes be difficult (especially in non-manufacturing companies) to financially evaluate or measure the possible loss resulting from the leakage of sensitive data, it is necessary to expect at least a loss of reputation and customer trust. The loss of customers and market share can also result in the cancellation of the business.

2. Compliance with regulations, norms and contractual agreements

Many industries and specific lines of business have very strict regulations and standards that require the protection of certain types of data (production plans, patents, personal data, etc.). Information classification and protection help companies meet these requirements and minimize the risk of sanctions or legal action.

At the same time, however, it is practically always true that the deployment of information classification only out of compulsion, to meet legal requirements, leads to a half-hearted solution that does not fulfill its purpose. Simply marking (tagging) documents, without deploying the appropriate technical solution for document security, does not lead to the necessary increase in the protection of sensitive information.

3. Improving the level of internal security

The level of confidentiality of documents may change during their life cycle. For example, information strictly confidential during the preparation phase, which later becomes public, is often shared by employees without any security via Ulož.to Disk - The Personal Backup Service and similar services. A lot of sensitive information, in which a company's competitive advantage lies, is also leaked on the side of subcontractors. The solution is again the classification and technical security of confidential information - this is the only way to protect company know-how and trade secrets outside the company.

Identifying important and sensitive data helps businesses better understand what information they need to protect the most. The implementation of appropriate security measures and access restrictions will minimize threats from internal workers or unauthorized persons from the outside.

4. Optimizing data management

Data classification helps organizations better understand and manage how data flows and how (and by whom) it is used. This facilitates the management and administration of data and enables more efficient processing and storage of information. In addition, data classification can be used, for example, in scaling storage capacities, defining disaster recovery plans, and generally also in managing costs for storage, automation, and archiving.

5. Increased credibility with customers

Organizations that intensively take care of confidential data and provide it with adequate protection gain much more trust from their customers and demonstrate their social responsibility. The introduction of data classification and protection confirms a commitment to privacy and raises awareness of cyber security.

What to remember when classifying data?

There are a few advanced software tools for document classification, and it can be deployed, for example, using the functions of the Microsoft 365 business solution. When implementing classification, you need to remember the following:

• Data classification should not be managed by the IT department – The solution must be based on business needs and the requirements of the department in which the largest number of documents is created. It is also necessary to support the management and appoint a professional guarantor responsible for the circulation of documents in the organization.
• Classification levels and rules must be defined – The organization must establish a methodology for marking documents, including classification levels, and introduce the rules to all employees who create or work with documents.
• Classification alone does not ensure data protection – Without subsequent technical data protection measures, document labeling alone does not ensure their confidentiality and integrity.
• “We do not need classification of information” myth – The requirement for technical measures against the loss of sensitive data already follows from the GDPR regulation, and therefore it is necessary to mark at least personal data managed within the organization.